Why Employees Prefer PEO Services

Professional Employer Organizations (PEOs) are powerful partners for businesses. By relieving the business of the most time-consuming and difficult people-related duties, the business can focus on growth and profitability.

It works, too. The National Association of Professional Employer Organizations (NAPEO) 2017 PEO Industry Report found that PEO users were 16% more likely to see profitability increase from 2015 to 2016 versus non-users. Simultaneously PEO users had fewer concerns about their ability to handle hiring employees, increasing revenues, and raising capital.

But it turns out the benefits of using a PEO also drive down to employees as well. For one thing, employee engagement levels were 5 points higher among PEO users versus others.

Moreover, employees of PEO users tend to have more positive beliefs about their employers, which can help with employee satisfaction, engagement, and loyalty.

It’s not hard to understand why. Employees appreciate a wider variety of services and benefits, and employees like having more power over their own experience. PEOs provide both. In fact, employees may be surprised at how high-touch HRO service can be. NAPEO alsoreports that employee turnover is 10 to 14 percentage points lower for companies that use PEO services versus those that do not.

CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about our ability to create a strategic HR function in your business that drives business growth potential, contact us today.